The Nigerian Government has granted Dangote Refinery exclusive rights to be the sole supplier of jet fuel for Nigerian airlines.
Festus Keyamo, the Minister of Aviation and Aerospace Development, announced this on Tuesday during an interview with Channels TV.
Keyamo said that, with his backing, airline companies have consented to appoint the refinery as the industry’s exclusive supplier of aviation fuel.
He said this choice is particularly significant as it aligns with the Nigerian Government’s recent agreement to trade naira for crude with Dangote.
He said, “The airline operators just met recently. With my blessing, it’s a decision from the airline operators in Nigeria that they should only buy from Dangote refinery Jet A1.
“You can see that yesterday we started a naira-for-crude purchase with Dangote. It’s all naira, no dollar component.”
Keyamo said that obtaining petrol from the Dangote refinery would shield airline operators from fluctuating crude oil prices, which would help lower their operational costs.
The Nigerian National Petroleum Company Limited (NNPC) has recently declared that it will terminate its agreed exclusive buying rights with Dangote Refinery during the initial phase of its operations.
As a result, fuel pricing will be determined by market forces set by the Dangote refinery and other fuel marketers.